Natural gas tumbles most in 15 weeks on warmer December forecast

The low in New York on Dec. 3 may be 46 degrees Fahrenheit (8 Celsius), 10 above normal, according to AccuWeather Inc. in State College, Pennsylvania. The low in Chicago may be 39 degrees, 12 more than the usual reading.

Heating demand in the lower 48 states will be 53 percent below the seasonal norm from Dec. 2 through Dec. 6, data from Weather Derivatives, show. Demand was 18 percent below normal in the week ended Nov. 24, the Belton, Missouri-based forecaster said.

About 50 percent of U.S. households use gas for heating, according to the Energy Department.

U.S. gas stockpiles fell by 38 billion cubic feet in the week ended Nov. 16 to 3.873 trillion, the department said. The five-year average change for the week was a gain of 3 billion.

Supply Report

Inventories in the so-called producing region in the south- central U.S. were cut by 7 billion cubic feet because one or more producers reclassified supplies from working gas, or stockpiles available for delivery, to base gas, or supplies needed to maintain adequate pressure, the department said.

Supplies probably fell by 5 billion cubic feet last week, based on warmer weather, and may show small injections the following two weeks if temperatures don’t drop, Chirichella said.

The five-year average decline for the week ended Nov. 23 is 18 billion cubic feet. The department is scheduled to release its stockpile report for the week on Nov. 29.

While the market has gapped lower today, the uptrend for gas futures is intact as long as prices hold above the $3.50-to- $3.60 support level, Chirichella said.